Relationship between the relative real interest rates

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What is the expected relationship between the relative real interest rates of two countries and the exchange rate of their currencies?

Some Latin American currencies have depreciated against the US dollar on a daily basis.

What is the major factor that places such a severe downward pressure on the value of these currencies?

What obvious change in Latin American economic policy would prevent the regular depreciation of these currencies?

Reference no: EM131325291

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